People are still somewhat suspicious of getting a Forex broker. There has been lots of misinformation, bad experiences (because of lack of info). Naturally, since entering a Forex market, you will need to invest money (not right away, but still). It’s something you should take a more in-depth look at when you are looking for a Forex broker.
Being able to trade Forex requires a third-party (Forex operates on the internet only), so it can be highly beneficial for you to find someone who knows a lot and is, of course, licensed and certified. It will prevent you from falling for scams, and you won’t be another played-out, disappointed ex-trader.
Here are some must-do tips for finding a good Forex broker.
Money Management
Before you start searching on the internet, it’s essential to recheck your finances. Check your income, spending, savings (if you have them, if not, you better start saving!), and any debt you might have.
If you have more than two credit cards, what are the others for? Do you still use them? Are you paying fees for them even though you almost forgot about them? Are there any subscriptions taking money off of your credit card monthly because you don’t even bother to notice, or you think it’s not too much money anyway.
We are talking about various apps or courses you don’t even use most of the time. If you like to indulge, why not spend that money on coffee or flowers, anything else you want, and make you happy? See? It’s not just random money anymore. Little by little, calculate how much money it takes away from you yearly. Why not save it instead?
Money management is essential because you get to see how much you pay attention to your spendings. You are an impulsive spender and potentially an impulsive Forex trader if you are not bothered with money even though you are struggling by the end of the month.
A good Forex broker
Searching for a good Forex broker isn’t so hard as people make it sound. In most cases, people who talk wrong about Forex or Forex traders, in general, are people who got scammed. It will sound harsh, but they were too lazy to check (by themselves) necessary information about the company and the broker.
If somebody calls you out of the blue and tells you you should invest your money RIGHT NOW, that’s a bad sign right off the bat. A good Forex broker will never ask you to invest everything you can, even if you want to, and you will most likely start small to test out the market. You will also talk about your trading plan and goals.
We mentioned money management earlier because it will help you decide how much money you want to put aside for investing purposes and even show you your trading goal might be. Research shows around 85% of Forex traders fail because they don’t have a good goal.
Everyone wants to have more money, but what do you want it for? Think more than just seeing more zeros in your account. If you are trading for the sake of money and nothing beyond that (saving more for retirement or a car, anything), you are likely to break down quickly since the Forex market is very volatile, and you should think long-term if you want to see a profit.
Finding a regulated Forex broker
The Internet is your best friend if you know where to look for it. Obtaining public information about the Forex broker you are interested in is easy. There are Forex reviews and regulator websites where you can check if they have a license and a certificate.
Regulator websites update their list of non-scam companies to make you feel safer and break the stigma around Forex. There are scams in every business, not just here. Unfortunately, many would like an easy way of earning cash and bite the bait too quickly.
That’s why checking broker reviews are great because you can also see other clients’ experience, the broker’s portfolio and if he’s actively engaging in the community. They usually act on a couple of networks, so you will get an idea of how they work and what they’re like.
Don’t forget you can talk to a broker and see if you understand each other enough. If that’s not the case, you can quickly move to the next one until you decide there’s a right Forex broker you want to open a trading account with. Do your research and good luck!
